Transportation Expenses

AAA

DEFINITION of 'Transportation Expenses'

An expense incurred by an employee or self-employed taxpayer while away from home in a travel status for business. Travel expenses are costs associated with business travel, such as taxi fares, meals and lodging. These expenses can be used as tax deductions for businesses and self-employed individuals when filing tax returns.

INVESTOPEDIA EXPLAINS 'Transportation Expenses'

Travel expenses may only be claimed if the transportation expenses are directly related to the primary business in which the individual works. For example, claiming transportation costs when you have not actually done any traveling for the business is not allowed and can be viewed as a form of tax fraud.

RELATED TERMS
  1. Fixed and Variable Rate Allowance ...

    A way of reimbursing employees who use their own or leased vehicles ...
  2. Home Office Expense

    Expenses incurred from the operation of a business or the performance ...
  3. Basing Point

    A specific location used in the basing point pricing system. ...
  4. Job Hunting Expenses

    Costs that individuals may be allowed to deduct on their federal ...
  5. Standard Mileage Rate

    A set rate the IRS allows for each mile driven by the taxpayer ...
  6. Travel Expenses

    The costs associated with traveling for the purpose of conducting ...
Related Articles
  1. Entrepreneurship

    10 Tax Benefits For The Self-Employed

    Running your own business has both personal and financial perks.
  2. Entrepreneurship

    Tax Credit For Plan Expenses Incurred By Small Businesses

    Determine whether your business is eligible to claim a tax credit for establishing a retirement plan.
  3. Taxes

    5 Expenses You Want to Be Deductible But Aren't

    Here are five expenses that many taxpayers often try to claim only to find out that their deductions are denied.
  4. Taxes

    7 Expenses You Won't Believe Are Deductible

    Many taxpayers would be surprised to discover some of the things that qualify as legitimate deductions.
  5. Options & Futures

    How To Owe Nothing On Your Federal Tax Return

    You have the control to determine whether you owe in April. Learn more here.
  6. Options & Futures

    Surviving On An Irregular Income

    Being self-employed provides freedom, but only if you learn to make your money last.
  7. Budgeting

    Top 7 Social Security Myths: Exposed

    A look at several myths that surround Social Security benefits.
  8. Entrepreneurship

    Best Checking Accounts For Small Businesses

    What you need to know to choose the best checking account for your small business – and where to look.
  9. Professionals

    Succession Tips for Advising Family Businesses

    While family businesses present great opportunity for financial advisors, advising them goes well beyond managing assets under management.
  10. Investing

    What's an Average Collection Period?

    Average collection period is an accounting term referring to the average number of days between a sale made on credit, and receipt of the payment. Businesses monitor this number to make sure ...

You May Also Like

Hot Definitions
  1. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  2. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  3. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  4. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  5. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  6. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
Trading Center